Businesses issuing bonds in the near future will find the regulations easier to negotiate, under a draft decree drawn up by the Finance Ministry.

Under it, enterprises that issue bonds before April 1 will still have to show a financial report of the previous year but can do so without providing an audit.

Under the current decree, business is required to show audited financial report.

Additionally, the draft decree covers looser regulations on the jurisdiction over licensing state-owned enterprises’ plan to issue bonds.

According to financial analysts, in the future the bond market is likely to be fairly eventful.

The Electricity of Vietnam (EVN) has announced that it plans to issue two trillion VND bonds in Vietnamese dong. Meanwhile, the Thot Not Food Processing and Trade Joint Stock Company (Gentraco) has approved a plan to issue bonds worth 50 billion VND.

At present, bonds issued by businesses make up 10 percent of the total bond market, with the Vietnam Development Bank making up 33 percent and the remainder Government or local bonds.

However, experts say that corporate bonds are expected to raise high amounts of capital thanks to a recovery in the global economy.

The number of businesses raising capital by issuing bonds has increased sharply. In 2008, only three enterprises had issued bonds and in 2009 the number increased to 15, with a total value of 20 trillion VND, three times as much as 2008.

Do Ngoc Quynh, General Secretary of the Bond Market Association, recommended that the Government sets up a committee to manage and develop the bond market and give priority to reviewing how bonds work./.